Angola’s Lobito Refinery Hits 23% Completion Mark, On Track for December 2027 Launch
Angola’s ambitious Lobito Refinery project is advancing rapidly, with the 200,000 barrels per day facility now 23% complete and firmly on schedule to begin operations in December 2027. Angolan President João Manuel Gonçalves Lourenço visited the project site this month, highlighting the progress and reaffirming the refinery’s strategic importance to the country’s macroeconomic stability. The project, located in Benguela Province, has already created 2,700 jobs and has been designated a strategic priority for the nation.
Spearheaded by Angola’s national oil company Sonangol, the refinery is being developed through a multi-phase strategy. The first phase focuses on priority units set to be completed in July 2027, after which the facility will undergo a five-month commissioning and testing period. During this initial phase, the refinery will produce naphtha and gasoline as well as a small quantity of diesel, representing 23% of the facility’s total production capacity. Output will be scaled during subsequent phases with the addition of a gasoline block and hydrocracking unit.
Minister of Mineral Resources, Petroleum and Gas Diamantino Azevedo emphasized that the Lobito refinery is part of a medium and long-term strategic vision for the petroleum derivatives sector aimed at strengthening national capacity, eliminating external dependence and creating more value within Angola’s economy. The first phase carries an investment of 3.8 billion dollars, with the total project cost estimated at 6.6 billion dollars. Sonangol has mobilized 1.4 billion dollars to date, including 330 million dollars for the acquisition of long-term manufacturing equipment.
The company is currently seeking 4.8 billion dollars to bridge the financing gap, with talks underway with Chinese and European banks as well as with regional neighbors. Zambia and Angola are also assessing the feasibility of a 1,400 kilometer pipeline connecting Zambia’s capital Lusaka with the Lobito Refinery, which could open new regional markets.
For Angola, the refinery marks a decisive shift away from a historically unbalanced hydrocarbons model dominated by crude exports. Despite being one of Africa’s leading oil producers, Angola only has one operational refinery in Luanda, leading to heavy reliance on petroleum imports. While oil accounts for 95% of the country’s total exports, Angola imports an estimated 70% of its refined petroleum products, draining billions of dollars annually in foreign exchange. Once operational, the Lobito Refinery has the potential to meet domestic demand while creating surplus volumes for regional export, positioning Angola as a regional petroleum hub.
Source: energycapitalpower.com
